Responses of Polygon, Solana, and Cardano to the SEC’s Securities Designation and Their Market Impact

From the Digifinex blog.

The Impact of Designated Securities: Polygon(MATIC), Solana(SOL), Cardano(ADA)

Following the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, Polygon(MATIC), Solana(SOL), and Cardano(ADA) have been identified as securities. This has prompted a severe market reaction with the price of these cryptocurrencies plummeting after online broker platforms in the US ceased trading of these three currencies.

(Image via BlockTempo

Understanding the SEC’s Criteria for Securities Classification

To understand how the SEC classifies tokens as securities, a deep dive into their standards is necessary. The SEC’s criteria for securities involve the initial coin offering team’s introduction of the technology, holding a large supply of tokens, and designing a deflation mechanism among other factors.

Digital Currencies Respond to SEC Securities Allegations

The cryptocurrencies identified as securities, Polygon(MATIC), Solana(SOL), and Cardano(ADA), have all responded to the SEC’s allegations. Below is a summary of their responses:

Polygon(MATIC): Never Targeted the U.S. Market

Polygon stated in a June 11 announcement that they have never targeted the U.S. market, always serving abroad. Polygon emphasizes that their network was developed outside the U.S. and to this day, remains focused on supporting the global community.

(Image via Twitter

Solana(SOL): Disagrees with Securities Allegations, Seeks Clear Regulation

Solana made it clear in their statement that they do not agree with the view of SOL being considered as securities, and hope that policy makers can provide clear legal guidelines for entrepreneurs in the digital asset field.

(Image via Twitter

Cardano(ADA): The Struggle Between Freedom and Autocracy

The Cardano Foundation expressed disagreement with the recent characterization of ADA as a security under U.S. law. They look forward to continuing to engage with regulatory agencies and policy makers to achieve legal clarity and certainty on these issues. Cardano’s founder, Charles Hoskinson, sees this event as a war between freedom and autocracy.

(Image via Twitter

Through the analysis above, we can see that the SEC’s lawsuit against Binance and Coinbase has had a significant impact on the digital currency market. We will continue to follow this topic and provide the latest reports.

Keywords: Polygon, MATIC, Solana, SOL, Cardano, ADA, Binance, Coinbase, Lawsuit, Securities and Exchange Commission (SEC), Cryptocurrency, Legal regulations, Digital assets, Cryptocurrency market, Howey Test

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